India's steel demand to grow 8.6%: Worldsteel

India's steel demand is expected to grow by a robust 8.6% in 2023, surpassing the global average growth rate of 1.8%, according to the World Steel Association (world-steel). This positive outlook comes after a 9.3% growth in 2022, showcasing the resilience of India's economy in the face of a high-interest rate environment. The growth is primarily driven by government infrastructure spending and a recovery in private investment. The construction and automotive sectors are expected to maintain their strong momentum, while the consumer durables sector, which has been affected by higher inflation and interest rates, is anticipated to improve in 2024.

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The global steel industry is also on the path to recovery, with world-steel forecasting a 1.8% increase in global steel demand in 2023, following a 3.3% contraction in 2022. By 2024, global steel demand is predicted to rise by 1.9%. Emerging economies are expected to grow at a faster pace than developed ones, with China's steel demand projected to record slight positive growth in 2024. However, uncertainties related to regional conflicts and unrest could impact the steel industry, leading to rising oil prices and geo-economic fragmentation.